Equip passes on investment fee reduction

The $7 billion industry superannuation fund Equip will cut fees and costs for both accumulation and pension members from 1 February 2016, after the fund was able to reduce the investment fees it pays fund managers in all of its investment options, except its cash option.

For an Equip MySuper member with a $50,000 account balance, the total annual fee will drop 15 per cent to $463 from the current $543.

The reduction was further helped by the removal of a 0.08 per cent levy that has applied since August 2013 to build fund reserves.

The levy was removed five months earlier than planned, according to the fund.

“We have always been about delivering the best possible value for members and we will continue to keep downward pressure on fees while not compromising the quality of products and services we provide to members and employers,” Equip chief executive Danielle Press said.

“It is extremely pleasing that we are able to announce this while simultaneously paving the way for the introduction of our automated investment service in the first half of 2016 and expanding our financial planning business.

“Empowering members to make better financial decisions through education and advice will continue to lie at the core of what we do,” Press said.